India keeps government procurement out of EU FTA, unlike UK deal

Under the UK deal, British companies can bid for Indian central government contracts in non-sensitive sectors, including goods, services, and construction projects.

India has not opened up its government procurement (GP) market in its free trade agreement (FTA) with the European Union, a departure from its approach in the trade deal with the United Kingdom.

A government official said that India has not offered any commitments that would require opening central government tenders to EU companies, keeping this area outside the scope of the FTA.

In contrast, the FTA with United Kingdom includes binding provisions on government procurement, giving British firms guaranteed access to India’s government procurement market.

Under the UK deal, British companies can bid for Indian central government contracts in non-sensitive sectors, including goods, services, and construction projects.

According to UK government estimates, this market comprises about 40,000 tenders annually, valued at roughly £38 billion, offering significant opportunities for foreign suppliers.

The India–EU FTA, concluded on January 27, covers tariff cuts on a wide range of goods and services, as well as provisions on mobility, but excludes government procurement, a key distinction from the UK deal.

Under the agreement with EU, tariffs on over 90 percent of goods traded between the two sides will be cut or phased out, opening opportunities for Indian exports in labour‑intensive sectors such as textiles, chemicals, leather, and engineering goods, while also reducing import duties on a range of European products, including automobiles, machinery, and processed foods.